Energy, Latvia, Legislation, Markets and Companies

Support for the expensive thermal power stations is the main reason why the mandatory procurement component (MPC) in electricity rates is so high, Reizniece-Ozola said in an interview with Latvian Radio this morning.

According to her, support for thermal power stations accounts for more than half of the MPC. For this reason, the options to reduce this support ought to be looked into.

Reizniece-Ozola also promises to assess the opportunities of reducing the MPC payments by large-capacity energy companies. She said that a ceiling on MPC would be set for companies like Liepajas metalurgs, Valmieras stikla skiedra, and Cemex.

There is not much room for maneuver, admitted Reizniece-Ozola, adding nevertheless that gradual reduction in the MPC was possible.

The Electricity Market Law stipulates that the cost of electricity produced by cogeneration plants and form renewable energy resources are to be covered by all consumers in Latvia proportionally to their electricity consumption. These costs make up the so-called mandatory procurement component or MPC.